Depositing money into a bank account is the most traditional form of saving, offering small but stable returns on deposited funds. Even today, deposits remain one of the most common ways to save.
Banks must offer deposits to the general public on equal terms. The terms and conditions of retail accounts must be approved by the Finnish Financial Supervisory Authority. The key features of deposits are reliability, safety and confidentiality, all guaranteed by law. Deposits can be either payable on demand or set to mature on a fixed date.
All Finnish deposit banks must belong to the Deposit Guarantee Fund. If a bank cannot meet its obligations, the Deposit Guarantee Fund reimburses deposits up to €100,000 per customer, per bank.
Current accounts
A current account is ideal for handling daily finances. Wages, pensions and benefits are often paid directly into the account, and it can be used for paying bills or managing loans and investments.
Current accounts may come with various services, such as online banking, telephone banking, payment services or different payment cards. They can also include an overdraft facility, though this requires a separate agreement with the bank.
Current accounts usually pay out interest, but the rates vary between banks and are currently very low. The way in which interest is calculated also varies – for example, it can based on the daily balance or the lowest monthly balance.
Different banks charge different fees for current accounts. The account itself, however, is usually free to open. Banks typically charge a monthly fee for current accounts, which covers a service package. In some cases, service packages can also be priced separately.
Savings and investment accounts
Savings and investment accounts are designed for saving or investing rather than everyday use, and often come with restrictions such as withdrawal limits (e.g. a maximum number of withdrawals within a certain period).
These accounts can be continuous (with regular deposits made under a savings agreement, e.g. monthly transfers towards a car or appliance) or fixed-term (funds are locked for a set period and only accessible when the term ends). Interest rates vary depending on the amount saved and the length of the term; larger amounts typically yield higher interest.
Home saver’s bonus interest accounts (ASP)
A home saver’s bonus interest account or an ASP account is a savings account designed for first-time home buyers. The ASP system is designed to support young people purchasing their first home. It is open to anyone aged 18–44 who wishes to save for a first home. Minors aged 15 or over can open an ASP account with their guardian’s consent. The interest earned on ASP savings is tax-free, and the state subsidises part of the loan interest.
An ASP agreement consists of three parts: the savings account contract, a savings plan and a loan agreement. The minimum savings period is two years (eight quarters). Together, the deposits and accrued interest must equal at least 10% of the purchase price of the intended home. In addition, the housing loan requires bank-approved collateral.
The ASP agreement can be amended during the savings period or transferred to another bank. The actual housing loan can also be taken out at a different bank, but the savings agreement must then be transferred to that bank.
By law, ASP accounts pay 1% interest on deposits. Once the saver has reached their savings target and buys a home, the bank pays a bonus interest of 2–4%, as specified in the agreement. If the ASP agreement is transferred to another bank, the obligation to pay this bonus also transfers to the new bank.